Wellness program saves city money on health insurance premiums

Published: Friday, April 5, 2013 at 4:30 a.m.

Last Modified: Thursday, April 4, 2013 at 11:11 p.m.

The city of Hendersonville's new wellness program, “Taking Shape,” is helping the city stay healthy while facing an upcoming 3 percent rise in health insurance premiums.

The average increase across the state for municipalities for 2013-14 is 14 percent, so Hendersonville is in good shape, said Hendersonville Human Resources Director David Sapp.

“The city of Lincolnton is staring down the barrel of a 19 percent increase right now,” he added.

The city launched a comprehensive wellness program for its 220 employees on July 1 that offers cash rewards and paid days off for meeting specific criteria, including regular exercise.

Of the 176 workers participating in the program — developed by a nine-member committee of city employees — 133 participants achieved their goals in the first quarter. Sixty-four percent of participants achieved their goals in the second quarter.

The city is looking at only a 3 percent increase on premiums in July, “one of the lowest increases across the state with the N.C. League of Municipalities health insurance program,” Sapp said in a memo to council, because participation in the wellness program has lowered health care costs.

“This program has been a huge success in helping our employees improve their health, engage in making healthier lifestyle decisions and aid the city in controlling health care costs,” Sapp said.

Rewards offered through the program are funded by the savings from the height of the city's old insurance rate.

City employees have logged 70,000 miles, roughly equal to two-and-a-half trips around the earth along the equator, since July 1. An average 91 participants are now attending wellness classes, held once or twice a quarter on topics ranging from foot care to nutrition.

Employees enter the program through free assessments provided by the N.C. League of Municipalities' Wellness Initiative. Participants earn points by engaging in activities from preventive care measures, such as annual physicals and tracking their movements with smart monitors, to attending health improvement classes and participating in city-sponsored volunteer work.

Exercise that can be verified by a fitness center or personal trainer and participating in the YMCA's “Fit-KIK” program can also earn an employee points.

Participants are encouraged to walk at least 12 hours, run at least eight hours or visit the gym 12 times each month. ActiPeds, wireless smart meters clipped to a participant's shoe, tracks a person's movement from normal strides to walking to running, distance traveled, calories burned and activity time.

The activity is recorded wirelessly when an employee comes in contact with a base station in each city building, Sapp said. Workers keep up with their progress online.

Employees can earn one of two rewards for gaining 160 points each quarter: a bonus of $125, before deductions, each quarter (about $500 a year); or $250 and two days of paid vacation. A majority of participants are taking the cash rewards, Sapp told the council.

New challenge

The Wellness Committee, chaired by Administrative Assistant Lu Ann Welter, proposed adding a new tier of challenges and rewards. Tier 2 calls for upping the amount of walking per month to 14 hours, running to 10 hours and gym visits to 14 for rewards of $150 a quarter or $300 and three paid vacation days a year.

City Councilman Jerry Smith motioned to approve the new challenge, and the decision was approved 3-0. Councilman Steve Caraker was called to testify in a lawsuit in Raleigh and was absent.

The goal of the program, Sapp said, is to get employees motivated, get them up and moving and “generally feeling better about themselves.” But the real bonus lies in a return on investments with lowered insurance premiums and costs of medical care.

Johnny Goings, street maintenance supervisor, is leading city employees in walking and has lost 34 pounds, according to Sapp, who adds Goings was able to cut out two of his medications.

The city plans to compare the results of those on the program in year one to year two.

Sapp said they have also added a cycling component to the wellness initiative. We're “engaging the employees on a variety of fitness levels,” he added. “This is a lifestyle change for many of us.”

<p>The city of Hendersonville's new wellness program, “Taking Shape,” is helping the city stay healthy while facing an upcoming 3 percent rise in health insurance premiums. </p><p>The average increase across the state for municipalities for 2013-14 is 14 percent, so Hendersonville is in good shape, said Hendersonville Human Resources Director David Sapp.</p><p>“The city of Lincolnton is staring down the barrel of a 19 percent increase right now,” he added. </p><p>The city launched a comprehensive wellness program for its 220 employees on July 1 that offers cash rewards and paid days off for meeting specific criteria, including regular exercise. </p><p>Of the 176 workers participating in the program — developed by a nine-member committee of city employees — 133 participants achieved their goals in the first quarter. Sixty-four percent of participants achieved their goals in the second quarter.</p><p>The city is looking at only a 3 percent increase on premiums in July, “one of the lowest increases across the state with the N.C. League of Municipalities health insurance program,” Sapp said in a memo to council, because participation in the wellness program has lowered health care costs. </p><p>“This program has been a huge success in helping our employees improve their health, engage in making healthier lifestyle decisions and aid the city in controlling health care costs,” Sapp said.</p><p>Rewards offered through the program are funded by the savings from the height of the city's old insurance rate.</p><p>City employees have logged 70,000 miles, roughly equal to two-and-a-half trips around the earth along the equator, since July 1. An average 91 participants are now attending wellness classes, held once or twice a quarter on topics ranging from foot care to nutrition.</p><p>Employees enter the program through free assessments provided by the N.C. League of Municipalities' Wellness Initiative. Participants earn points by engaging in activities from preventive care measures, such as annual physicals and tracking their movements with smart monitors, to attending health improvement classes and participating in city-sponsored volunteer work.</p><p>Exercise that can be verified by a fitness center or personal trainer and participating in the YMCA's “Fit-KIK” program can also earn an employee points.</p><p>Participants are encouraged to walk at least 12 hours, run at least eight hours or visit the gym 12 times each month. ActiPeds, wireless smart meters clipped to a participant's shoe, tracks a person's movement from normal strides to walking to running, distance traveled, calories burned and activity time. </p><p>The activity is recorded wirelessly when an employee comes in contact with a base station in each city building, Sapp said. Workers keep up with their progress online.</p><p>Employees can earn one of two rewards for gaining 160 points each quarter: a bonus of $125, before deductions, each quarter (about $500 a year); or $250 and two days of paid vacation. A majority of participants are taking the cash rewards, Sapp told the council.</p><p><b>New challenge</b></p><p>The Wellness Committee, chaired by Administrative Assistant Lu Ann Welter, proposed adding a new tier of challenges and rewards. Tier 2 calls for upping the amount of walking per month to 14 hours, running to 10 hours and gym visits to 14 for rewards of $150 a quarter or $300 and three paid vacation days a year.</p><p>City Councilman Jerry Smith motioned to approve the new challenge, and the decision was approved 3-0. Councilman Steve Caraker was called to testify in a lawsuit in Raleigh and was absent.</p><p>The goal of the program, Sapp said, is to get employees motivated, get them up and moving and “generally feeling better about themselves.” But the real bonus lies in a return on investments with lowered insurance premiums and costs of medical care.</p><p>Johnny Goings, street maintenance supervisor, is leading city employees in walking and has lost 34 pounds, according to Sapp, who adds Goings was able to cut out two of his medications.</p><p>The city plans to compare the results of those on the program in year one to year two.</p><p>Sapp said they have also added a cycling component to the wellness initiative. We're “engaging the employees on a variety of fitness levels,” he added. “This is a lifestyle change for many of us.”</p><p>The committee is made up of Mike Cantrell, sanitation supervisor; GIS Analyst Rachel Magyary; Amy Knight, legal assistant; Susan Castle, patrol administrative assistant; City Engineer Brent Detwiler; City Attorney Sam Fritschner; firefighter Jacob Dinkins; Welter; and Sapp.</p><p>Reach Weaver at emily.weaver@blueridgenow.com or 828-694-7867.</p>